"Magnificent Seven" Makeover: Which Stocks Have Earned a Spot, and Which Haven't?

Group 1: Performance of the "Magnificent Seven" - The "Magnificent Seven" stocks, including Alphabet, Apple, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla, have been significant contributors to market growth but are experiencing uneven performance in 2025 [1][2] - Apple and Tesla are suggested to be replaced by Palantir Technologies and Broadcom due to their underperformance [2] Group 2: Apple’s Challenges - Apple's revenue growth has slowed, with fiscal 2024 revenue at $391 billion, down from $394.3 billion in fiscal 2022, and only a 4% year-over-year increase in the first half of fiscal 2025 [5][6] - The company has not introduced new breakout products recently and is lagging in AI innovation, with its AI offerings failing to drive significant upgrades in iPhone sales [6][7] - Apple is losing market share in China to local competitors like Xiaomi and Huawei, leading to declining revenue and necessitating sales incentives [7][8] Group 3: Tesla’s Struggles - Tesla's EV deliveries fell by 13% in Q1 and 14% in Q2, with auto revenue dropping by 20% [9][10] - Increased competition, particularly in China, and the rise of hybrid vehicles are contributing to Tesla's challenges, alongside CEO Elon Musk's controversial political actions that have alienated potential buyers [10][11] - Despite hopes for its robotaxi business, skepticism remains regarding its safety and effectiveness, with Alphabet's Waymo leading in the driverless ride-sharing sector [12] Group 4: Palantir’s Growth - Palantir has shown strong growth, with Q1 revenue increasing by 39% year over year, driven largely by U.S. government contracts, which grew by 45% to $373 million [14][15] - The company is positioning its Artificial Intelligence Platform (AIP) as a key tool for clients, enabling data integration and AI application across various industries [15][16] Group 5: Broadcom’s Opportunities - Broadcom's revenue grew by 20% year over year, with adjusted EPS rising by 44%, primarily due to its AI networking portfolio, which saw a 70% revenue surge [17][18] - The company is focusing on custom AI chips, with significant opportunities projected from hyperscaler customers planning to deploy 1 million AI chip clusters by 2027, representing a serviceable opportunity of $60 billion to $90 billion [19][20]